Canada-U.S. dual citizens could be worse off if FATCA lawsuit succeeds

https://twitter.com/USCitizenAbroad/status/501488312410857472
FATCA is nothing more and nothing less than an attempt by the U.S. (with collaboration from the Harper Government) to forcibly impose a U.S. law on Canada. The article fails to point out the long run costs of compliance with U.S. law will far exceed the costs of non- compliance. Well, assuming that you want Canada to continue as a free and sovereign nation.
Roy Berg continually says:
The is U.S. law and therefore we must comply.

Financial Post | Business

Two women have challenged the constitutionality of a Canada-U.S. agreement to share the tax information of U.S. citizens resident in Canada, with the IRS.

[np_storybar title=”Ottawa is violating Canadians’ constitutional rights to help the U.S. collect taxes” link=”http://fullcomment.nationalpost.com/2014/08/14/marni-soupcoff-ottawa-is-violating-canadians-constitutional-rights-to-help-the-u-s-collect-taxes/”]Marni Soupcoff: At the Americans’ behest, Canada will now be sharing tax information even about Canadians who have never lived a day of their lives in the United States, never worked in the United States, and never owed the IRS a single penny. Merely having dual U.S. citizenship — for example because one’s parents were Americans or one was born on U.S. soil to Canadian parents — is enough to trigger the mandatory sharing of private financial details. While one can understand Washington’s desire to crack down on tax cheats, FATCA goes too far, and it’s distressing that the Canadian government has so willingly stepped up to help. Keep reading.
[/np_storybar]

But an…

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2 thoughts on “Canada-U.S. dual citizens could be worse off if FATCA lawsuit succeeds

  1. Petros

    Here is my comment:

    Ok, please do your homework. The first thing is that your so-called expert is making a handsome living as tax compliance specialist, taking the money of innocent Canadians living in Canada to figure out how to get them into compliance with the IRS. He is not at all what anyone in the world could call objective, in that he makes his entire living off of handing over so-called “US citizens” living in Canada to the IRS, as sheep to the slaughter. Please, stop consulting the IRS agents in Canada for information on what is best for Canada.

    Secondly, the article’s title is completely specious. I speak to dozens of people who are scared to death of the IRS because the Harper government has signed this IGA. I’ve spoken to Jewish people who are saying deja vu to their family’s Holocaust nightmares. So-called “dual” citizens in Canada will be much better if the courts decide to honor their charter rights and rebuke the Harper government for this attempted extraordinary rendition of their legal bank account information to a hostile and rapacious and bankrupt, both morally and economically, United States government.

    The reason why the Financial Post does these kinds of articles, is that the papers are the publishing wings of the major banks and the big FATCA compliance firms like Moody’s and KPMG. If you want to do some journalism, then you’d stop talking to the carpet baggers in Canada.

    Reply
  2. mjh49783

    I could see two potential things happening if this FATCA lawsuit succeeds. (and yes, I could very well be wrong)

    1. Since Canadian banks will likely still be on the hook for FATCA penalties, and will have to report to the IRS themselves, in lieu of an IGA that would be rendered void, they may have no choice but to close the accounts of people with US indicia to protect themselves from the IRSs punitive 30% withholding rate, prompting more lawsuits over the issue of national origin discrimination.

    2. Canadian banks might decide that their US investments carry for them more risk than they’re willing to tolerate in lieu of an IGA agreement, and along with the specter of being sued by their US origin account holders, they decide to divest their US holdings instead, so that a punitive 30% of nothing, is nothing. ;^)

    I will hope for number 2.

    Reply

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